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Technology, Skill, and Growth in a Global Economy

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  • Jaewon Jung

    () (Université de Cergy-Pontoise, THEMA)

Abstract

This paper develops an endogenous growth model based on a Roy-like assignment model in which heterogeneous workers endogenously sort into different technologies/tasks according to their comparative advantage. By modeling explicit distinction between worker skills and tasks, as well as incorporating task-specific technologies, worker skill distribution and heterogeneous firms, we analyze in depth the technology-skill-growth and offshoring-growth links that are absent in traditional models of endogenous growth. The model provides therefore richer predictions on the relationship between labor market changes and growth due to technology up and downgrading mechanism at both individual worker and firm levels.

Suggested Citation

  • Jaewon Jung, 2015. "Technology, Skill, and Growth in a Global Economy," THEMA Working Papers 2015-08, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
  • Handle: RePEc:ema:worpap:2015-08
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    File URL: http://thema.u-cergy.fr/IMG/documents/2015-08.pdf
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    References listed on IDEAS

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    1. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-1037, October.
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    3. Arnaud Costinot & Jonathan Vogel, 2010. "Matching and Inequality in the World Economy," Journal of Political Economy, University of Chicago Press, vol. 118(4), pages 747-786, August.
    4. Baldwin, Richard E. & Forslid, Rikard, 2000. "Trade liberalisation and endogenous growth: A q-theory approach," Journal of International Economics, Elsevier, vol. 50(2), pages 497-517, April.
    5. Alwyn Young, 1991. "Learning by Doing and the Dynamic Effects of International Trade," The Quarterly Journal of Economics, Oxford University Press, vol. 106(2), pages 369-405.
    6. James R. Markusen, 2004. "Multinational Firms and the Theory of International Trade," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262633078.
    7. Yeaple, Stephen Ross, 2005. "A simple model of firm heterogeneity, international trade, and wages," Journal of International Economics, Elsevier, vol. 65(1), pages 1-20, January.
    8. Blanchard, Emily & Willmann, Gerald, 2013. "Trade, education, and the shrinking middle class," Kiel Working Papers 1831, Kiel Institute for the World Economy (IfW).
    9. Elhanan Helpman & Oleg Itskhoki & Stephen Redding, 2010. "Inequality and Unemployment in a Global Economy," Econometrica, Econometric Society, vol. 78(4), pages 1239-1283, July.
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    11. Peretto, Pietro F., 2003. "Endogenous market structure and the growth and welfare effects of economic integration," Journal of International Economics, Elsevier, vol. 60(1), pages 177-201, May.
    12. Tobin, James, 1969. "A General Equilibrium Approach to Monetary Theory," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 1(1), pages 15-29, February.
    13. Emily Blanchard & Gerald Willmann, 2013. "Trade, Education, and the Shrinking Middle Class," CESifo Working Paper Series 4141, CESifo Group Munich.
    14. Gene M. Grossman, 2004. "The Distribution of Talent and the Pattern and Consequences of International Trade," Journal of Political Economy, University of Chicago Press, vol. 112(1), pages 209-239, February.
    15. Guido Matias Cortes, 2016. "Where Have the Middle-Wage Workers Gone? A Study of Polarization Using Panel Data," Journal of Labor Economics, University of Chicago Press, vol. 34(1), pages 63-105.
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    Cited by:

    1. Jaewon Jung, 2018. "Introducing Roy-like Worker Assignment into Computable General Equilibrium Models," THEMA Working Papers 2018-06, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.

    More about this item

    Keywords

    Endogenous growth; Technology-augmented skill distribution; Worker/firm heterogeneity; Offshoring; Skill upgrading/polarization;

    JEL classification:

    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • F66 - International Economics - - Economic Impacts of Globalization - - - Labor
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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